I get a lot of questions about how to price your clothing or accessories line – particularly the question of wholesale prices vs. retail prices and what to charge on your website for the same styles you ship to boutiques.
Yes, it seems tricky sometimes.
Today’s video is about how to price your clothing or accessories line when you sell to boutiques as well as on your own website – not to mention keeping retailers happy.
Watch as I answer a question from a designer, quite possibly the same question you have in your head!
What do you think? Have you sold online for less that the price in boutiques? Leave me a detailed comment and tell me what happened, OK?
Thanks for reading (and watching)
P.S. If you want to learn how to sell your clothing or accessories line to boutiques, we can help. We have a simple, step-by-step online course about How to Sell to Boutiques. you can find it here: https://fashionbrainacademy.com/blog/e-learning/bootcamps/
I just watched the video, very helpful. Question: Can the price between retail and wholesale be consistent, meaning 2.5 times difference? Or when you do the line sheet mention 10% reduced price at brick and mortar stores.
It can definitely be consistent. The only tricky part is if you sell to multiple stores, they can have different retail prices for your line. I suggest you mark it at the higher price on your shop to give these retailers a little room – and you don;t have to worry about fluctuating pricing on your site if you get a new account that wants to mark it up a bit more.
I really liked the video! One question: You said the retailer expects to mark it up 2.2/2.5, is that on all boutiques or just accessories? I’m a bridal gown designer and I was expecting retail to mark it up 100%, maybe 150% at some stores. Is that an accurate assumption or should I refigure my wholesale price?
Brooke, I think there is a disconnect between Mark up vs. Margin. Maybe this article will help: http://sellingtogiftshops.com/2011/04/06/margins-vs-mark-up/
When working with new producers, I notice there are many questions around margins and mark-up. Many people are confused, and use the terms interchangeably, but there is a difference.
Mark-up is how much a retailer “marks up” a product from the wholesale cost. For example, if a retailer keystones, she or he is doubling, or using 100% mark-up. In other words, marking up 100% on the WHOLESALE PRICE.
Margin is something different, and the more important and relevant term. Margin refers to a percentage of the RETAIL PRICE. So using the keystoning example, if you double the wholesale price, your MARGIN is 50% (of the retail price). The retail industry uses margins for virtually all their financial analysis and other factors, so when we (or buyers) mention a percentage margin, we are talking about a percent (i.e. margin) of the RETAIL price.
“Gift Rep Sandy”
I really appreciate the insight here in this post and am confident it’s going to be helpful to me and many others. Thanks!